What Is the President Doing to Help the Economy Besides Going to Fundraisers?

TAPPER: Well, what is the president doing? We know that he went to a -- -- he went to fundraisers last night. What's he doing today?

CARNEY: Jake, that is --

TAPPER: What is he doing --

CARNEY: The president -- as the president has worked --

TAPPER: We hear him hectoring Congress about all the stuff that needs to be done to help create jobs --

CARNEY: That's right. And Congress --

TAPPER: -- and then he flew off to Chicago. What is he doing today?

CARNEY: The president is having meetings with his senior staff. The president has called on Congress to move quickly on things that have bipartisan support and are in Congress's lap, the trade --

TAPPER: The same stuff he was doing a couple months ago, calling on Congress to pass things.

CARNEY: Congress has the power to pass legislation that the president can sign. The actions that it can take could create more jobs right now, if it passed the patent reform, if it passed the free trade agreements. And as you know, there are other issues that the president encourages and will push hard for the Congress to take up when it returns from its recess, including extension of the payroll tax cut, which would put -- which has this year put an additional $1,000 in the pockets of every American, or typical American family. And he believes we need to do that again next year, because that assists those families in having them -- you know, giving them the ability to make ends meet, and puts money back into the economy, which in turn sustains businesses and creates jobs.  And he will continue to come up with and propose measures that we in Washington together can take to spur further economic growth and job creation.

TAPPER: Has he called Mitch McConnell? Has he called John Boehner? Has -- is he working on things that they can do? If every --

CARNEY: Jake, I don't -- I know you weren't here yesterday, but I know you were here for most of the days before that, when this president and those leaders and others worked seven days a week to avert a major economic crisis in this country that would have made –-

TAPPER: You’re the one always saying the president can walk and chew gum at the same time. I'm asking you --

CARNEY: Well, what are -- are you asking me what -- he is -- he is focused --

TAPPER: Other than calling on Congress to pass things you've been calling on Congress to pass for months, what is he doing to help the economy?

CARNEY: He is working very closely with his senior economic advisers to come up with new proposals to help advance growth and job creation. He is working with members of Congress to help advance growth and job creation. And he will continue to do that. There are things that Congress can do now to create jobs, and they should. There are things that Congress will be able to do when they return from recess to help create jobs and spur growth, and they should. And he looks forward to working with Congress to do that.

Is Obama Trying to Collapse the Economy?

 

By Jeannie DeAngelis, American Thinker

Combine class warfare, demonizing the rich, getting as many people onto the welfare rolls as possible, and pushing the economic system to collapse and you have a flawless formula for Cloward-Piven 2.0 -- and a vehicle that ensures Obama remains in power.

Cloward-Piven is a much talked-about strategy proposed in the mid-1960's by two Columbia University sociology professors named Richard Andrew Cloward and Frances Fox Piven.  The Cloward-Piven approach was sometimes referred to as the "crisis strategy," which they believed were a means to "end poverty."

The premise of the Cloward-Piven collective/anti-capitalist gospel decried "individual mobility and achievement," celebrated organized labor, fostered the principle that "if each finally found himself in the same relative economic relationship to his fellows ... all were infinitely better off."

The duo taught that if you flooded the welfare rolls and bankrupted the cities and ultimately the nation, it would foster economic collapse, which would lead to political turmoil so severe that socialism would be accepted as a fix to an out-of-control set of circumstances.

Read more: http://www.americanthinker.com/2011/08/cloward-piven_paradise_now.html#ixzz1Tz1EQMeT

The Obama Strut

NoisyRoom
By: Terresa Monroe-Hamilton

Lights, cameras and a Marxist, political media whore is born. As the media fawns in the presence of the Obamessiah, we all watch in dread the Obama strut on the debt ceiling. Americans would never ask their President to turn away from his ‘true’ vocation. And by the time Obama is done lying today, we’ll all be in search of either a rope to hang ourselves or in desperate need of a roving gang of monstrous aliens we can slaughter. Anything, and I mean anything, to take our minds off the destruction of America’s future by our so-called leadership.
I listened to sanity coming from Jim DeMint when he called for Cut, Cap and Balance. It’s just common sense:
Cut Cap Balance: Reason for Optimism? Jim DeMint Puts Onus on Prez
And then made the tactical error of tuning into the news where I was treated to Obama wobbling like a massive pile of jello – he won’t give a solid number for the Republicans to deal with. Hell, he won’t give a plan at all. It’s the never ending dance of “gotcha” that the Obama administration plays with the American public. And just like Lucie in the skit with Charlie Brown, Americans always wind up flat on their backs wondering what happened. That’ll be 5 cents please…
Sure, there will be a lame vote next Tuesday where the Republicans are proposing we raise the debt ceiling 2.4 Trillion and reduce the debt by the same amount. Wait a minute… I’m not a genius, but doesn’t that cipher to not much progress at all? That doesn’t sound like the salvation we so sorely need; it sounds like classic politics where the can is kicked down the road and we are still screwed financially – they are just going to prolong it while the politicians finish raping the system of every dime in grandma’s couch. They are absolutely shameless.
Those in office who are with the Tea Party need to call Obama’s bluff and tell him to stuff it. Sure, we lose no matter which way we go. But let’s take our medicine and at least save what’s left of the country. If we don’t, I guess China will be more than glad to rule us. Better start learning Mandarin and fast.
But in the end, no matter what Conservatives, the Tea Party and Americans want, Obama will have his way with us. Making Americans feel just like a girl for hire. He wants the system to fail – yeah, baby… I would not be surprised to see him ride in on a white steed at the end of these negotiations and sign an Executive Order raising the debt ceiling. He’ll say the evil Republicans forced him to do it, because they wanted to destroy the county. And after all, he knows what is best for America – him and his minions: Timothy (tax cheat) Geithner, Ben Bernanke, Nancy Pelosi, Harry Reid and a whole cast of evil surrogates.
Where lies and deception reign supreme, they’ll all dance the Obama strut. It’s just a form of appreciation and elite theft. And don’t forget the race card – whenever things don’t go the Progressive way, they pull the race card from their sleeve and claim it’s because Obama is black.
According to Obama, Armageddon is looming and we are doomed I tell you if we don’t raise the debt ceiling. Never mind that is a bald faced lie – it’s dramatic, no? And in the next evil breath, he says that there is no need to do anything radical – that is as long as you do what he wants. You can’t win with Obama and that’s the point.
Here’s an idea… Cut the damned spending! Cap it while you are at it and balance the budget.

• Cut – Substantial cuts in spending that will reduce the deficit next year and thereafter.
• Cap – Enforceable spending caps that will put federal spending on a path to a balanced budget.
• Balance – Congressional passage of a Balanced Budget Amendment to the U.S. Constitution — but only if it includes both a spending limitation and a super-majority for raising taxes, in addition to balancing revenues and expenses.

You’re playing with our lives and our country and you’ve got butter fingers! Knock it off, grow up and stop this. And if Obama won’t, well Republicans better grow a set and make sure he does. Stand your ground and get this done. Or all of you will be strutting right out the door come the next election in 2012. Count on it.

D-Day on the Debt Ceiling (Update: The president speaks)

by Bryan Preston
The GOP House caucus leaders gave a brief press conference a few minutes ago as I write this, showing a very unified front on the debt ceiling talks. Their message was two-fold: No tax increases, and the president needs to step up and lead already. They noted that the president doesn’t seem to have a plan, which isn’t exactly news, and that it’s time to act — also, not exactly news.
They delivered the press remarks to get out ahead of the president’s own speech, planned for later in the morning. He is likely to pin the blame for the impasse on the Republicans. But it’s worth remembering just how we got to this point in the first place. Take it away, WSJ:
On spending, it is important to recall how extraordinary the blowout of the last three years has been. We’ve seen nothing like it since World War II. Nothing close. The nearby chart tracks federal outlays as a share of GDP since 1960. The early peaks coincide with the rise of the Great Society, the recession of 1974-75, and then a high of 23.5% with the recession of 1982 and the Reagan defense buildup.
From there, spending declines, most rapidly during the 1990s as defense outlays fell to 3% of GDP in 2000 from its Reagan peak of 6.2% in 1986. The early George W. Bush years saw spending bounce up to a plateau of roughly 20% of GDP, but no more than 20.7% as recently as 2008.

Read more...

The Debt Limit

By Richard Baehr

I am pretty certain that in the current debate over the debt ceiling and the attempt to reduce the deficit, the President will come out on top. The reason for this is simple- he is the leader of his Party and his side in the debate. What Nancy Pelosi and Harry Reid think is irrelevant.  Other than demagoguery about Eric Cantor, they have largely kept their mouths shut.  Obama has the big megaphone, and gets all the networks to break away for his speeches and press conferences. So he can shade every substantive debate his way, and get a large audience for his attempt to frame his side as one that wants to compromise,  behave responsibly,  achieve balance between tax increases on those who can afford to pay more and cutting programs for the needy (in reality, mostly the middle class). 

On the GOP side, you have a fight for the nomination going on, so the leaders of the Party are those in the Senate and House.  Here real ideological battles are playing out publicly. 
I just watched a bit of the Obama press conference, and as usual, he lied.  Obama argued that America is not Greece or Portugal and our deficit problems only need a little tweaking. That is patently false.  The Obama budget for the next ten years, relies on optimistic growth forecasts for the economy, optimistic forecasts for interest rates on federal debt (very low), and absurd estimates of the cost of the health care reform act -- now scored as a deficit reducer, when in reality, once many companies drop coverage , pay the small penalties, and allow their employees to enter the subsidized exchanges, the cost will skyrocket. The federal deficit of $14 trillion could easily double in the next ten years.  Greece is taking some medicine. We have not.  As usual, we will defer the problem. 
We have a gridlock in Washington because one party, the Democrats, does not trust  the results of the private economy, and wants to insure the results it desires. They need larger government to achieve more redistribution.  For that they need more tax money.  The GOP is more sensible about the size of government and the excess of regulation (and its job killing impact).  They understand that almost all "cuts"  in government spending are really not cuts at all,  but merely cuts in the rate of growth of government.  The debate over changing the inflation adjustment for Social Security  by a few tenths of one percent per year going forward, brought out all the predictable "granny will freeze, starve and fall over a cliff" baloney.

 Read more...

US Debt: We, "The Public"/ Addison Wiggin

We, “The Public”

AddisonWiggin “Let me distinguish between professional politicians and the public at large,” opined the president during a press conference earlier this week. “The public is not paying close attention to the ins and outs of how a Treasury auction goes,” he supposed before adding, we guess for reassurance, “We’re paid to worry about it.” Never mind professional politicians are the reason we have a debt problem in the first place. And so you have a choice, dear reader: Follow the president’s advice and don’t worry about the backdoor debt ceiling deal they’re cooking up inside the Beltway... or read on and prepare yourself for the consequences of what the “professional politicians” have wrought. “I’d love to see the size of the US bubble,” a reader wrote to us recently, “and where it would fit on the debt-to-GDP chart.” Yes, it’s big bubble indeed. In fact, it dwarfs the size of the problems currently threatening to tear the European economy asunder. Here, for ease of comparison, we’ve superimposed a yellow circle representing the United States: The US national debt is 5.5 times that of Italy – the largest debt in the eurozone and the cause of so much consternation in the markets this week. But the real story lies in the center of the yellow circle on this chart. First, check out the bottom scale, plotting each nation’s debt-to- GDP ratio: With a $14.3 trillion national debt and a $14.7 trillion economy, the US debt-to-GDP ratio is just shy of 100% – near Portugal-Italy territory, though not as bad as Greece. Then there’s the left scale: credit default swaps – the “insurance policies” paid by the buyers of these nations’ government debt to cover themselves in the event of a default. The total amount of US credit default swaps outstanding is low, relative to many European countries. But at $4.58 billion, it’s nearly the same amount of credit default swaps outstanding on Lehman Bros. in 2008. As you might recall, roughly $4.5 billion in default swaps was enough to wipe out AIG, then the world’s largest global insurance firm... with the requisite unassailable record. Perhaps those memories are weighing on the minds of credit default swap traders. The higher the cost of a credit default swap, the higher the implied risk. The cost of insuring against US government debt, while still low, has grown significantly since mid-May. As of Monday, it had moved to 50 basis points - one-half of 1%: By this reckoning, Uncle Sam is now a worse bet than Germany. The rise in the price of US CDS coincides with the drama in Washington over raising the Aug. 2 debt ceiling deadline. According to the Bipartisan Policy Center, tax revenue for the 29 days of August after the 2nd will total roughly $172.4 billion. That compares to $306.7 billion in spending. Ordinarily, the Treasury would cover that $134.3 billion gap by issuing new Treasury debt. But after Aug. 2, it won’t be able to do so. That means Uncle Sam would have to immediately balance his books. What would that look like? Well, he’d have to choose his priorities. The Bipartisan Policy Center report breaks down the government’s Aug. 3-31 expenses in a way that shows what the $172.4 billion in revenue can cover... and what it can’t. The Social Security checks would still be cut... but not income tax refunds. Medicare and Medicaid would be kept going... but not food stamps. Military contractors would still be paid... but not the troops. They can move certain items above the $172.4 billion line and others below it... but something has to give. And, believe it or not, matters are even worse than that list of priorities reveals. About $507.4 billion in existing Treasury securities come due between Aug. 3-31. To “roll over” that debt, the Treasury must issue new securities. If the unthinkable happens, and the government isn’t able to “roll over” the debt? $100 billion of that debt matures on Aug. 4. Another $100 billion matures a week later, on Aug. 11. That eats up the entire $172.4 billion in revenue expected for the month right there... before the government spends a penny on anything. Unless the Treasury Department is sitting on some slush fund we don’t know about, it’s game over. The United States defaults... triggering those credit default swaps. “Let’s imagine,” said a Newsweek piece by Daniel Gross last spring, “a world in which the US government, lacking the will to tax or cut spending, can’t scrape up the cash to stay current on interest payments and can’t roll over debt as it matures. “That would trigger a huge decline in the value of Treasuries and mortgage-backed securities. The balance sheet of every US financial institution – JPMorgan, Goldman, Citi, your neighborhood bank, the Federal Reserve, money-market funds – would be decimated. There wouldn’t be a single solvent bank, insurer, or company in the United States. “The large multinational banks, which have significant US operations and plenty of this stuff on their books, would likewise be wiped out. Oh, and foreign holders of US debt...would be toast, too. “In this dystopia,” continued Gross, “who, precisely, would be able to make good on the insurance sold on US government debt? The last time we had a set of events that were supposed to trigger large- scale payment of credit-default swaps, the system basically shut down. All the investors who bought insurance on financial instruments from AIG got paid off in full only because the US government bailed the company out. “Who would bail out the Treasury Department and the Federal Reserve?” Who, indeed? This is at the heart of the scenario we lay out here, the one in which Washington’s credit card is cut up. We urge you to give it a look. After all, Aug. 2 is only three weeks away. Then again, what do we know? We’re not “professional politicians” ..we’re just part of “the public.” Addison Wiggin, for The Daily Reckoning

Dems: GOP Ideologues Deseperate to make a Debt Deal

Treasury Secretary Tim Geithner and Democrat leaders are urging Republicans to compromise on a debt deal before the country defaults on August 2. Senate Majority Leader Harry Reid says GOP ideologues are hindering negotiations. (July 14)

From China to US: Final Segments For San Francisco Bay Bridge Are Ready To Ship

Ricky Kreitner

Image: Kanaka Menehune

The last four steel modules for a new 2.2-mile span of the San Francisco Bay Bridge are being loaded onto a ship in Shanghai today, and should arrive in about three weeks, Bloomberg reports. These last few segments will join the 24 already in place to form the new East Span of the bridge, which will replace a section of the bridge damaged in the 1989 earthquake. Construction on the new span cost $6.4 billion and is set to be completed in 2013.
The outsourcing of the bridge's construction to Shanghai Zhenhua, a subsidiary of Hong Kong-listed China Communications Construction Co., reportedly saved the state of California about $400 million.
Cate Long, a blogger at Reuters, argues that the U.S. economy will never recover if American companies and public utilities continue to outsource infrastructure projects overseas. She writes on the MuniLand blog:

"In times of fiscal stress it’s easy to understand why public entities are trying hard to cut costs. But this 'cost cutting' is really just off-shoring American jobs. Something has to give — we can’t recover without creating American jobs. It’s our choice, and I choose spending more and creating jobs at home."

Shanghai Zhenhua claims that it will not be making a huge profit on the bridge's construction, and that its real goal is to gain expertise in a new field. As the video below by Bloomberg shows, Chinese companies in recent years have demonstrated a fast-growing facility in making the longest and strongest bridges in the world.